By Jon Peterson
A private individual based on the Peninsula has acquired the retail and office asset and vacant land located very close to the Santana Row retail asset with the two addresses of 333-357 South Redwood Avenue and 2960 Stevens Creek Boulevard in San Jose. The sales price was $14.5 million, according to sources aware of the transaction details. This price point was able to beat the offering price by $300,000 when the property hit the market earlier this year.
The seller of the property was San Jose-based University Avenue Partners, which worked with Marcus & Millichap as the leading agent on the sale. The people involved in the sale included Yuri Sergunin, first vice president of investments, and J.J. Taughinbaugh, senior vice president of investments with Marcus & Millichap.
“The sale of this property did attract a great deal of attention. Its location near a major retail destination of both Santana Row and the Westfield Valley Fair was surely a factor,” said Taughinbaugh. “We had offers from other capital sources that were looking to turn the property into something else in the future. This included redevelopment for senior housing, hospitality and multifamily.”
The new owners of the asset has not made any definite plans about what they plan with the property in the future. “This could be to keep it as an owner/user property or possibly develop it into other uses, which could be either commercial or residential,” said Taughinbaugh.
One of the parcels involved in the sale has an existing property located on it. This is includes a combination of retail and office space, which is located at 2960 Stevens Creek, and it totals 14,365 square feet over two floors. The second-floor office space of 7,602 square foot is now 100 percent vacant. On the first floor there are three tenants. One of the retailers is Penelope’s Boutique, which occupies 1,653 square feet. It signed a lease that stated in January of this year, and it lasts until the end of February 2024. Pergo Roof has a month-to-month lease for 3,166 square feet. The other tenant is Leafy, which takes up 1,935 square feet.
The other part of the property is vacant land located at 333-357 South Redwood Avenue. The lot size is just over half an acre or approximately a little over 26,000 square feet.
The location overall has very strong demographics. The total population within a one-mile radius of the property is 24,879 people. The average household income within that range of the asset is $162,743.
The sale of this property represents the second asset that University Avenue Partners has sold in the same area over the last five months. The other property was the multi-tenant office building at 2910 Stevens Creek Boulevard that traded for $17.6 million in June and was acquired by a joint venture of Brandenburg Properties and venture capital firm SDS NexGen Partners.